Give Gifts to Save Taxes

1
339
Save Taxes
Save Taxes

You have tried your best to save taxes, but did you ever try giving gifts to someone just to save taxes? If not, then you can do it now, give gifts to people and save taxes. When you use gifts as a component to save taxes you must be very careful, as you should not make any mistake in understanding the provision.

Give Gifts to Save Taxes

As we already told you that, gifts can help you save taxes. Let’s check out what all you need to do while using ‘gift’ as a income tax saving tool.

What is considered as the gift?

Anything that is given or taken without consideration is considered as gift. Gifts may be assets, movable and immovable property, cash amount, cheque, precious metal etc.

How exemption can you get for Gift?

If the value of the gift is less than Rs. 50,000, then the gift will be considered as tax-free. It should be noted that if the gift amount is more than Rs. 50,000 then the entire amount is taxable.

Gift for Relatives

Gifts from relatives such as parents, spouse, siblings of spouse, own siblings, other eligible donors are completely exempt from any kind of tax. There is no upper limit to claim deduction on such gifts.

Gifts received during Marriage

If you have received a gift during a marriage, then gifts from other relatives are also eligible for tax exemption. Bride and groom both are eligible to claim the exemption to the extent they have received gifts under their individual names. You must make sure that you receive the gift close to your marriage date. Bride, as well as groom, should take the benefit of this exemption and must claim a deduction on the total gift amount. To claim a deduction for the gifts received in marriage, you will have to maintain a record of the gifts received.

Gifts received from Employer

A gift from employer to an employee is eligible for a full exemption if the gift is worth Rs. 5000 or less. If the value of a gift is more than Rs. 5000 then the entire amount is taxable.

Gift as per Will

Gifts received under the will or gift received as inheritance is exempt of any kind of taxes without any upper ceiling amount.

If you wish to save taxes, then its time you give a gift to someone.

1 COMMENT

  1. Woгking as a contract paralegaⅼ has components in its favor, and factorѕ which can be detrіmental to some people.
    If a sense of aⅾventure and excitement іn your work life is what would swimsuit yⲟu the perfect, freelancing
    could be an awesome option for you!

LEAVE A REPLY

Please enter your comment!
Please enter your name here